NEW YORK (TheStreet) -- Shares of Quantum (QTM) were gaining 5.4% to $1.77, hitting a 52-week high of $1.78, Friday with heavy trading volume after a company director purchased more stock on the open market.
Director Gregg J. Powers purchased 50,000 shares of the data storage devices company for $82,000, or $1.6359 a share, on Dec. 3. The purchase brings Powers' total number of shares in Quantum to 536,500 shares, according to an SEC filing.
More than 3.5 million shares of Quantum were traded by 12:15 p.m. Friday following the disclosure of the sale, well above the average trading volume for the company of about 1.2 million shares a day.
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TheStreet Ratings team rates QUANTUM CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUANTUM CORP (QTM) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The area that we feel has been the company's primary weakness has been its poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: